Oppenheimer Remains Bullish on Home Depot (HD) After Attending Sell-Side Breakfast

Oppenheimer reiterated an Outperform rating and $140.00 price target on Home Depot (NYSE: HD) after attending the company's sell-side breakfast.

Analyst Brian Nagel commented, "On Thursday, Dec. 15th, we attended the Home Depot (HD) sell-side breakfast at the NYSE. For a long while, we have looked favorably upon prospects for Home Depot and its shares. In our view, HD represents a very efficiently run and capital disciplined company that is well-positioned to capitalize successfully upon an ongoing recovery in the US housing market and strengthening demand for home improvement related products. HD reported Q3 (Oct.) results on Nov. 15th. The gathering at the NYSE was structured as a rather informal “chat” with senior management to supplement the company’s bi-annual Analyst meeting. HD did not issue a press release. Overall, we walked away from the HD event incrementally convicted in our positive outlook for shares. A few key takeaways: 1) HD is sticking by its near- and longer-term financial forecasts articulated in its Q3 (Oct.) report and at last year’s Analyst meeting (held Dec. 8, 2015); 2) management indicated clearly that it does not view the recent move higher in interest rates as troublesome given still very attractive affordability measures in the US housing market; 3) Home Depot is now much more focused upon driving sales of seasonal and holiday products in the traditionally less significant fiscal fourth quarter (period ended Jan.); 4) the company is intent upon enhancing its ability to serve professional customers through a combination of more attractive finance terms and on site delivery options; and 5) comments imply that HD is well positioned to capitalize upon improving home improvement demand from millennials as they begin to purchase homes and tackle DIY projects."

For an analyst ratings summary and ratings history on Home Depot click here. For more ratings news on Home Depot click here.

Shares of Home Depot closed at $135.84 yesterday.

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